DELAFIELD, Wis. (Stockpickr) -- Professional traders running mutual funds and hedge funds don't just look at a stock's price moves; they also track big changes in volume activity. Often when above-average volume moves into an equity, it precedes a large spike in volatility.
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Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by "superinvestors."
Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it's always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock.
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With that in mind, let's take a look at several stocks rising on unusual volume today.
Hain Celestial Group
Hain Celestial Group (HAIN) manufactures, markets, distributes and sells natural and organic products. This stock closed up 1.7% to $79.56 in Monday's trading session.
Monday's Volume: 801,000
Three-Month Average Volume: 521,395
Volume % Change: 50%
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Shares of HAIN moved higher on Monday after a Piper Jaffray analyst upgraded the stock from neutral to overweight on rising demand for organic, natural, gluten-free foods, as well as those that have been genetically modified. Piper said that Hain Celestial is well-positioned to capitalize on these trends and raised their price target to $94 from $80.
From a technical perspective, HAIN spiked modestly higher here right above its 50-day moving average of $77.49 with above-average volume. This stock has been uptrending for the last few weeks, with shares moving higher from its low of $75.81 to its intraday high of $80.40. During that move, shares of HAIN have been mostly making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of HAIN within range of triggering a near-term breakout trade. That trade will hit if HAIN manages to take out Monday's high of $80.40 and then more resistance at $81.55 with high volume.
Traders should now look for long-biased trades in HAIN as long as it's trending above its 50-day at $77.49, and then once it sustains a move or close above those breakout levels with volume that hits near or above 521,395 shares. If that breakout hits soon, then HAIN will set up to re-test or possibly take out its next major overhead resistance levels at $83 to its 52-week high at $85.48.
ExOne
ExOne (XONE) is a global provider of 3D printing machines and printed products to industrial customers. This stock closed up 9.3% at $48.32 in Monday's trading session.
Monday's Volume: 1.81 million
Three-Month Average Volume: 879,349
Volume % Change: 93%
Shares of XONE skyrocketed higher on Monday after FBR Capital Markets reiterated its outperform rating and a $75 price target on the stock.
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From a technical perspective, XONE exploded higher here right above some near-term support at $42.16 with strong upside volume. This stock has been downtrending badly for the last month and change, with shares moving lower from its high of $72.90 to its recent low of $42.16. During that move, shares of XONE have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of XONE look ready to see an end in the short term to their downside volatility -- and potentially start a new uptrend.
Traders should now look for long-biased trades in XONE as long as it's trending above Monday's low of $44.02 and then once it sustains a move or close above Monday's high of $49.48 with volume that hits near or above 879,349 shares. If we get that move soon, then XONE will set up to re-test or possibly take out its next major overhead resistance levels at $56 to its 50-day at $60.21.
eHealth
eHealth (EHTH) is a health insurance exchange through which individuals, families and small businesses can compare health insurance products and purchase and enroll in coverage online. This stock closed up 2.3% at $33.98 in Monday's trading session.
Monday's Volume: 208,000
Three-Month Average Volume: 124,817
Volume % Change: 115%
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From a technical perspective, EHTH trended modestly higher here right above some key near-term support levels at $32 and $31 with above-average volume. This stock has been uptrending strong for the last two months, with shares moving higher from its low of $26.68 to its recent high of $35.92. During that uptrend, shares of EHTH have been mostly making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of EHTH within range of triggering a major breakout trade. That trade will hit if EHTH manages to take out Monday's high of $34.06 to its 52-week high at $35.92 with high volume.
Traders should now look for long-biased trades in EHTH as long as it's trending above key support at $32 or at $31, and then once it sustains a move or close above those breakout levels with volume that's near or above 124,817 shares. If we get that move soon, then EHTH will set up to enter new 52-week-high territory above $35.92, which is bullish technical price action. Some possible upside targets off that move are $40 to $43.
Darling International
Darling International (DAR) is a recycler of food and animal by-products and provides grease trap services to food service establishments. This stock closed up 2.3% at $20.80 in Monday's trading session.
Monday's Volume: 1.97 million
Three-Month Average Volume: 676,482
Volume % Change: 215%
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From a technical perspective, DAR spiked higher here back above its 50-day moving average of $20.52 with strong upside volume. This move is quickly pushing shares of DAR within range of triggering a big breakout trade. That trade will hit if DAR manages to take out some near-term overhead resistance at $21.49 and then once it clears its 52-week high at $22.20 with high volume.
Traders should now look for long-biased trades in DAR as long as it's trending above some key near-term support at $20.17 or at $19.75 and then once it sustains a move or close above those breakout levels with volume that's near or above 676,482 shares. If that breakout hits soon, then DAR will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $25 to $27.
Dunkin' Brands Group
Dunkin' Brands Group (DNKN) is a franchisor of quick-service restaurants serving hot and cold coffee and baked goods, as well as hard-serve ice cream. This stock closed up 1% at $45.20 in Monday's trading session.
Monday's Volume: 1.48 million
Three-Month Average Volume: 846,494
Volume % Change: 145%
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From a technical perspective, DNKN jumped higher here right above its 50-day moving average of $43.98 with above-average volume. This move briefly pushed shares of DNKN into breakout territory, after the stock flirted with some near-term overhead resistance at $45.55. Shares of DNKN closed just below that breakout level at $45.20 with volume that was well above its three-month average action of 846,494 shares. Shares of DNKN are now starting to move within range of triggering a major breakout trade. That trade will hit if DNKN manages to take out Monday's high of $45.49 and then once it clears its all-time high at $46.50 with high volume.
Traders should now look for long-biased trades in DNKN as long as it's trending above its 50-day at $43.98 or above more near-term support at $43.44 and then once it sustains a move or close above those breakout levels with volume that's near or above 846,494 shares. If that breakout hits soon, then DNKN will set up to enter new all-time high territory, which is bullish technical price action. Some possible upside targets off that breakout $50 to $55, or even $60.
To see more stocks rising on unusual volume, check out the Stocks Rising on Unusual Volume portfolio on Stockpickr.
-- Written by Roberto Pedone in Delafield, Wis.
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At the time of publication, author had no positions in stocks mentioned.
Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including
CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.
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